Main Article Content

Abstract

Tax is an obligatory financial contribution that individuals or institutions, as taxpayers, owe to the state without any direct benefits.  It is compulsory and is collected under the regulation of law.  The present study aims to examine the effectiveness of directors’ supervision and tax aggressiveness in diminishing frauds in financial reporting.  The subject of this study is manufacturing companies listed in Indonesia Stock Exchange.  The results of this study show that, firstly, effective directors’ supervision has significant correlation to diminishing fraudulent financial reporting.  Directors, as the leaders of the company, demonstrated that they could perform their supervisory function very well.  Secondly, tax aggressiveness has significant correlation to diminishing fraudulent financial reporting.

Keywords

Directors tax aggressiveness fraudulence in financial reporting

Article Details

How to Cite
wiralestari, wiralestari. (2019). DO DIRECTORS AND TAX AGRESSIVENESS AFFECT FRAUDULENT FINANCIAL REPORTING?. Jurnal Akuntansi, 9(3), 219–226. https://doi.org/10.33369/j.akuntansi.9.3.219-226

References

  1. Airlangga Hartaro, selaku Menteri Perindustrian. (2018). Kemenperin: Industri Manufaktur Penyumbang Pajak Terbesar. Melalui https://ekonomi.kompas.com/read/2018/01/09/211727326/kemenperin-industri-manufaktur-penyumbang-pajak-terbesar. Diakses [2/1/2019].
  2. AICPA. (2002). Consideration of Fraud in a Financial Statement Audit. Statement on Accounting Standards (SAS) No.99.
  3. Assosiation of Certified fraud Examiners (ACFE). (2018). Report To The Nations 2018 Global Study On Occupational Fraud And Abuse Asia-Pacific Edition.
  4. __________________________. (2010). Report on the Nation on Occupational Fraud & Abuse.
  5. Balakrishnan, Karthik., Jennifer L. Blouin., Wayne Guay. (2012). Does Tax Aggressiveness Reduce Corporate Transparency?. SSRN.
  6. Brian, I., dan D. Martani. (2014). Analisis Pengaruh Penghindaran Pajak dan Kepemilikan Keluarga Terhadap Waktu Pengumuman Laporan Keuangan Tahunan Perusahaan. Simposium Nasional Akuntansi (SNA) XVII, Lombok.
  7. Beasley,M.S. (1996). An Empirical Analysis of the Relation between Board Characteristic an Voluntary Improvements in Audit Commitee Composition and Experience. Contemporary Accounting Reserach (18) 539-570.
  8. Cadbury Committee. (1992). Report of the Committee on the Financial Aspect of Corporate Governance. London: Gee.
  9. Carcello, J. V., R. H. Hermanson. dan N. T. McGrath. (1992). “Audit Quality Attributes: The Perceptions of Audit Partners, Prepares, and Financial. Statement Users.” Auditing: A Journal of Practice & Theory 11, (Spring): 115.
  10. Carpenter,V. L., and Feroz, E. H. (2001). Institutional Theory And Accounting Rule Choice: An Analysis Of Four US State Governments’ Decisions To Adopt Generally Accepted Accounting Principles. Accounitng, Organizations and Society,26, 565-596.
  11. Chen, S., Chen, X., Cheng, Q dan Shevlin, T. (2010). Are Family Firms More Tax Aggressive than Non Family Firms? Journal of Financial Economics, 95.
  12. Dewi Kartika Sari dan Dwi Martani. (2010). Karakteristik Kepemilikan Perusahaan, Corporate Governance, dan Tindakan Pajak Agresif. Simposium Nasional Akuntansi (SNA) XIII, Purwokerto.
  13. Dhaliwal D, Gleason C, dan Mills L. (2004). Last Chance Earnings Management: Using the Tax Expense to Meet Analysts’ Forecasts, Contemporary Accounting Research De Waegenaere, Anja, Richard Sansing, and Jacco Wielhouwer. Financial Accounting Measures of Tax Reporting Aggressiveness. SSRN.
  14. Desai, M.A. & Dharmapala, D. (2006). Corporate tax avoidance and high-powered incentives. Journal of Financial Economics.
  15. Erickson M, Hanlon M, Maydew E.(2004). How Much Will Firms Pay for Earnings that Do Not Exist? Evidence of Taxes Paid on Allegedly Fraudulent Earnings, The Accounting Review, 79(2):387-408.
  16. Fama, Eugene F., and Michael C. Jensen. (1983). Separation of Ownership and Control. Journall of Law and Economics, Vol XXVI, June.
  17. Frank, M., L. Lynch and S. Rego. (2009). Tax Reporting Aggressiveness and its Relation to Aggressive Financial Reporting. Accounting Review, 84(2): 467-96.
  18. Ida Farida, Adi Prawira, dan Yana Setiawan. (2018). Tax aggressiveness and accounting fraud practice, an evidence in ASEAN countries. International Journal of Multidisciplinary Education and Research,3(1) , 05-10.
  19. Jensen, C Michael and William H. Meckling. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. SSRN.
  20. Kementerian Keuangan Republik Indonesia. (2018). APBN Kita Harga Komoditas Naik, Penerimaan Pnbp Semakin Baik Kinerja Dan Fakta.
  21. Lennox C, Lisowsky P, Pittman J.(2013). Tax Aggressiveness and Accounting Fraud, Journal of Accounting Research,51(4):739-78.
  22. Richard Susilo. (2017). Indonesia Masuk Peringkat ke-11 Penghindaran Pajak Perusahaan, Jepang No.3. Melalui http://www.tribunnews.com/internasional/2017/11/20/indonesia-masuk-peringkat-ke-11-penghindaran-pajak-perusahaan-jepang-no3. Diakses [3/1/2019].
  23. Rochmat Soemitro. (2011). Asas dan Dasar Perpajakan. Rafika Aditama, Bandung.
  24. Sekaran, Uma and Roger Bougie. (2010). Research Methods For Business A Skill Building Approach Fifth Edition. Wiley.
  25. Sukotjo, Clarisa and Soenarno, Yanuar Nanok. (2018). Tax Aggressiveness, Accounting Fraud, and Annual Report Readability. Journal of Finance and Economics, 6(2), 38-42.
  26. The Public Oversight Board (POB). (1995). Directors, Management, and Auditors : Allies in Protecting Shareholder Interst, Stamford.